FOREX TRADING

EUR/USD

closed lower on Wednesday and below the 10-day moving average crossing signalling that a short-term top has likely been posted. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted and would then open the door for additional weakness near-term.

EUR/USDclosed lower on Wednesday and below the 10-day moving average crossing signalling that a short-term top has likely been posted. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted and would then open the door for additional weakness near-term.

USD/JPY closed lower on Wednesday ending a two-day correction off last Friday’s low. The mid-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are diverging but remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends the decline off May’s high, last November’s low crossing is the next downside target. Multiple closes above the 20-day moving average crossing would confirm that a short-term low has been posted.

GBP/USD closed lower on Wednesday and below initial support marked by the 10-day moving average crossing as it renewed the decline off last week’s high. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted. If it resumes the rally off May’s low, the 50% retracement level of the 2009-2010-decline crossing is the next upside target.

USD/CHF closed slightly higher on Wednesday and the mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are overbought, diverging and are turning bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it extends this month’s decline, the 75% retracement level of the 2009-2010-rally crossing is the next downside target.